SF Urban Properties Ltd – Half-year Results 2026: Portfolio Rotation Completed and Positive Revaluations

• Net profit (incl. revaluations): CHF 20.89 mn (30 June 2025: CHF 21.55 mn)
• Net profit (excl. revaluations): CHF 8.32 mn (30 June 2025: CHF 8.23 mn)
• Portfolio value increased from CHF 823.10 mn to CHF 837.62 mn (+1.76%)
• Vacancy rate as at the reporting date reduced to 1.78% (30 June 2025: 1.98%)

SF Urban Properties Ltd’s half-year results for 2026 underscore the quality of its investment portfolio, which is focused on urban locations in Zurich and Basel, as well as the successful implementation of its core/satellite strategy.

“The investment portfolio is demonstrating its strengths in the current market environment: rising revaluations and a stable, low vacancy rate underline the quality of the locations and properties,” says Bruno Kurz, CEO of SF Urban Properties Ltd.

Completion of Portfolio Rotation and Significant Increase in Value

In the first half of 2026, SF Urban Properties Ltd successfully completed the portfolio rotation initiated in the year 2024. The properties at Uitikonerstrasse 17 in Schlieren and at Bohl 4 in St. Gallen were sold with a high, planned capital gain of CHF 3.63 mn (after deferred tax). This represents a profit contribution of CHF 1.08 per registered share. With the exception of one property in Bern held under building rights, the investment portfolio is now invested to just over 61% in Zurich and around 38% in Basel.

The market value of the investment portfolio has increased by CHF 14.52 mn gross, or 1.76%, compared with the end of 2025. On a like-for-like basis, after deducting investments, this represents a net change in value of CHF 15.80 mn, or 1.96%. The average weighted real discount rate fell from 2.64% to 2.61% in the first half of the year. The carrying amount of investment properties increased to CHF 837.62 mn as at 30 June 2026 (31 December 2025: CHF 823.10 mn). 
 

Solid Operating Result and Successful Development Projects

Property income, at CHF 15.45 mn, was slightly below the figure for the same period last year of CHF 15.93 mn. The main reason for this was the portfolio rotation planned and carried out during the reporting year.

In the property development segment, the projects at Minervastrasse 124 in Zurich and at Alte Landstrasse 26 in Rüschlikon were transferred to their new owners on schedule and were thus successfully completed. The EBIT contribution from the property development segment amounted to CHF 1.58 mn (30 June 2025: CHF 2.74 mn).

Net profit amounted to CHF 20.89 mn (30 June 2025: CHF 21.55 mn). Excluding revaluation effects, it rose slightly to CHF 8.32 mn (30 June 2025: CHF 8.23 mn). Earnings per share, excluding revaluation effects, increased from CHF 2.17 to CHF 2.39. Net asset value (NAV) per share rose to CHF 124.49 as at 30 June 2026 (31 December 2025: CHF 122.16).

Outlook for 2026

With regard to the investment portfolio, the focus in the second half of the year will be on targeted vacancy management and the implementation, as planned, of refurbishments and replacement builds. Construction is scheduled to commence in the second half of the year on the properties at Seefeldstrasse 186 and Genferstrasse 21 in Zurich. Planning applications are to be submitted for Asylstrasse 68 and Richard-Wagner-Strasse 28 in Zurich.

The company is also continuing to drive forward its development pipeline and plans to submit planning applications by the end of 2026 for the projects at Zollikerstrasse 132/134 in Zurich and at Weidstrasse 29/31 in Rüschlikon. For the year 2026, management expects EBIT of around CHF 1.8 mn from the development segment.

The capital authorised by the Annual General Meeting for the purpose of carrying out an ordinary capital increase was intended to be used for the purchase of an attractive commercial property in Zurich. Contrary to expectations, this transaction could not be successfully completed. Despite an intensive review of alternative acquisition opportunities, no sufficiently attractive alternative was found. Against this background, the Board of Directors has decided to refrain from carrying out the ordinary capital increase.

The management confirms the targets for 2026 and expects net profit per share, excluding revaluation effects, to be on a par with the 2024 financial year, as previously announced in the 2025 Annual Report.